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The Effects of Agglomeration and National Property Rights on Digital Confidentiality Performance
Author(s) -
Massimino Brett,
Gray John V.,
Boyer Kenneth K.
Publication year - 2017
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/poms.12627
Subject(s) - confidentiality , leverage (statistics) , business , intellectual property , product (mathematics) , industrial organization , computer science , computer security , geometry , mathematics , machine learning , operating system
In recent years, instances of organizations failing to maintain digital confidentiality performance have greatly increased in frequency and monetary damage. While the global sourcing of activities in the development of digital assets is widespread, very little is known about how location‐related factors may affect confidentiality outcomes. Addressing this, we empirically investigate two factors with rich theoretical bases and logical linkages to confidentiality: industrial agglomeration and national property rights protections. We conduct a large‐scale, empirical study at the product level of analysis, and treat the confidentiality of a digital product as a performance outcome that is affected by the locations of the two key organizational entities involved in the product's development. We leverage modern, web‐crawling methods to harvest secondary data from a major, illicit distribution channel for these products and combine these data with other secondary data involving legitimate commerce to derive a secondary measure of confidentiality performance. We find robust results, and demonstrate practical significance of our findings through scenario analyses based on actual data from our sample.